- EUR / USD starts the new week on a firm footing.
- The USD struggles to find demand as risk flows continue to dominate the markets.
- The US ISM Services PMI posted its highest reading in March.
The pair EUR/USD It fluctuated in a tight range around 1.1750 in the first half of the day on Monday, but gained traction on the dollar under heavy selling pressure during US business hours. After reaching its highest level since March 25 at 1.1840, the pair has entered a consolidation phase and was last seen gaining 0.42% on the day at 1.1812.
DXY plummets towards 92.50
The impressive US jobs report on Friday, which showed March non-farm payrolls (NFPs) increased by 916,000, allowed risk flows to dominate financial markets at the beginning of the week.
Reflecting the risk-positive market environment, the Dow Jones Industrial and S&P 500 indices opened at new all-time highs after the Easter break. Consequently, the US dollar struggled to find demand and the US dollar index (DXY) turned south. At the moment, the DXY is losing 0.46% to 92.58.
Additionally, the ISM reported on Monday that business activity in the US services sector expanded at its strongest pace on record in March, and the services PMI jumped to 63.7 from 55.3 in February. This reading beat the market expectation of 58.5 by a wide margin and provided an additional boost to risk sentiment.
On Tuesday, Sentix investor confidence and the February unemployment rate will be placed on the European economic agenda. Later in the day, the US IBD / TIPP economic optimism will be seen as further impetus.
Technical levels
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